KUALA LUMPUR: Malaysian palm oil futures firmed on Tuesday, after ending at a record high in the previous session, as cargo surveyor data showed improving export demand in the first half of February.
The benchmark palm oil contract for April delivery on the Bursa Malaysia Derivatives Exchange gained 22 ringgit, or 0.39%, to 5,689 ringgit ($1,359.70) a tonne by the midday break, rising for a third consecutive session.
Exports of Malaysian palm oil products for Feb. 1-15 rose 23.6% to 496,983 tonnes from the same period in January, independent inspection company AmSpec Agri Malaysia said.
“The market traded higher on the current palm demand as well as the lineups till the first week of March; these showing Indonesian sides nominating local shipments to destinations,” Marcello Cultrera, institutional sales manager and broker at Phillip Futures in Kuala Lumpur.
Palm oil may hover below 5,676 ringgit
Yet, the upside was capped below 5,700 ringgit on expectations of a rise in production, he added.
Refinitiv Agriculture Research on Monday said the contract will edge up towards resistance levels at 5,690-5,710 ringgit this week, while support levels at 5,210-5,220 ringgit, underpinned by weak production, Indonesia’s export regulations and India’s import duty cut on crude palm oil.
In other related oils, Dalian’s most-active soyoil contract rose 0.3%, while its palm oil contract gained 0.6%. Soyoil prices on the Chicago Board of Trade were down 0.5%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Palm oil faces a resistance at 5,676 ringgit per tonne.
It may hover below this level or retrace towards the range of 5,484 ringgit to 5,558 ringgit, Reuters technical analyst Wang Tao said.